1m 1998B GO Improvement Bonds
CITY OF
CHANHASSEN
7700 Market Boulevard
PO Box 147
Chanhassen, MN 55317
Administration
Phone 952,227,1100
Fax 952.227.1110
Building Inspections
Phone 952.227.1180
Fax 952.227.1190
Engineering
Phone 952.227.1160
Fax 952.227.1170
Finance
Phone 952,227.1140
Fax 952.227.1110
Park & Recreation
Phone 952.227.1120
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Recreation Center
2310 Coulter Boulevard
Phone 952,227.1400
Fax 952.227.1404
Planning &
Natural Resources
Phone 952.227.1130
Fax 952.227.1110
Public Works
1591 Park Road
Phone 952.227.1300
Fax 952,227.1310
Senior Center
Phone 952.227.1125
Fax 952.227.1110
Web Site
www.clchanhassen.mn.us
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MEMORANDUM
TO:
Todd Gerhardt, City Manager
FROM:
~ '7 :" ),'" I
a~
Greg Sticha, Finance Director
DA TE:
March 23,2005
SUBJECT: Redemption of 1998B GO Improvement Bonds
BACKGROUND
Based on the review of our bond payment schedules by our financial advisors,
Ehlers & Associates, it has been advised that the 1998B GO Improvement Bonds,
callable 2-1-05, be redeemed and prepaid for those bonds maturing in 2006 and
2007 totaling $305,000 plus accrued interest (est. $5,000) to date. This will save
the City approximately $15,000 in interest costs over the next two years.
After the prepayment of these bonds, the remaining cash balance of approximately
$370,000 and deferred special assessments of $116,000 (see Attachment 2) will
be transferred to the permanent revolving debt fund.
RECOMMENDA TION
At this time, staff recommends the council authorize the resolution (see
Attachment 1) for the prepayment of the 1998B GO Improvement bonds totaling
$305,000 plus accrued interest to date, and authorize staff to transfer remaining
balances to the permanent revolving debt fund. Approval requires a simple
majority vote of those city council members present.
ATTACHMENT
1. Resolution
2. Balance Sheet 1998 GO Improvement Bonds
The City 01 Chanhassen · A growing community with clean lakes, quality schools, a charming downtown, thriving businesses, winding trails, and beautiful parks A great place to live work, and play
EXTRACT OF MINUTES OF MEETING
CITY COUNCIL OF THE
CITY OF CHANHASSEN, MINNESOTA
Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of
Chanhassen, Minnesota, was duly called and held at City Hall in Chanhassen, Minnesota, on Monday, March
28, 2004.
The following members were present:
and the following members were absent:
introduced the following resolution and moved its adoption:
Member
Resolution No.
RESOLUTION CALLING FOR REDEMPTION OF OUTSTANDING GENERAL OBLIGATION
IMPROVEMENT BONDS, SERIES 1998B, DATED JUNE 1,1998
WHEREAS, the City Council of the City of Chanhassen, Minnesota (the ACity@), issued on behalf of
the City $1,325,000 General Obligation Improvement Bonds, Series 1998B, dated June 1, 1998 (the ASeries
1998B Bonds@), of which $305,000 still remain outstanding; and
WHEREAS, all of the Series 1998B Bonds maturing in the years 2006 and thereafter, are subject to
redemption and prepayment at the option of the City, on February 1,2005 and on any date thereafter at par,
plus accrued interest, all as provided in the resolution adopted by the City Council on May 26, 1998,
authorizing the issuance of the Series 1998B Bonds (the A1998 Resolution@); and
WHEREAS, the City Council deems it desirable and in the best interests of the City to call those bonds
maturing in the years 2006 through 2007, both inclusive, totaling $305,000 in principal amount, on May 18,
2005, in accordance with the 1998 Resolution; and,
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City ofChanhassen, Minnesota,
as follows:
(1) All of the Series 1998B Bonds maturing in the years 2006 through 2007, both inclusive,
totaling $305,000 in principal amount shall be redeemed and prepaid on May 18, 2005, at par,
plus accrued interest.
.4fJ.cÅ!l111 ..¡
1.
(2) The City Manager is hereby authorized and directed to give mailed notice of call, prior to May
18, 2005, for the Series 1998B Bonds, to the Bond Registrar/Paying Agent, U.S. Bank
National Association, in St. Paul, Minnesota, as successor to Firstar Bank, N.A., in
Milwaukee, Wisconsin, (f/kla Firstar Trust Company), as agent for Firstar Bank of Minnesota
N.A., in St. Paul, Minnesota. Said notice shall be substantially in the form shown as Exhibit
A.
(3) The City Manager is hereby authorized and directed to deposit with the Bond
Registrar/Paying Agent of the Series 1998B Bonds, U.S. Bank National Association, in St.
Paul, Minnesota, as successor to Firstar Bank, N.A., in Milwaukee, Wisconsin, (f/kla Firstar
Trust Company), as agent for Firstar Bank of Minnesota N.A., in St. Paul, Minnesota, prior to
the call date of May 18, 2005, sufficient funds to pay all principal and interest due on the
Series 1998B Bonds as of the call date.
The motion for the adoption of the foregoing resolution was duly seconded by Member
and upon a vote being taken thereon, the following voted in favor thereof:
and the following voted against the same:
whereupon said resolution was declared duly passed and adopted.
Mayor
Manager
STATE OF MINNESOTA
COUNTIES OF CARVER AND HENNEPIN
CITY OF CHANHASSEN
I, the undersigned, being the duly qualified and acting City Manager of the City of Chanhassen,
Minnesota (the "City"), hereby certify that I have carefully compared the attached and foregoing extract of
minutes of a regular meeting of the City Council of the City held on Monday, March 28, 2005, with the
original minutes on file in my office and the extract is a full, true and correct copy of the minutes, insofar as
they relate to the redemption of certain General Obligation Improvement Bonds, Series 1998B of the City.
WITNESS Myhand as City Manager and the corporate seal of the City this 28th day of March, 2005.
City Manager
City of Chanhassen, Minnesota
(SEAL)
EXHIBIT A
NOTICE OF REDEMPTION
General Obligation Improvement Bonds, Series 1998B
Dated June 1, 1998
City of Chanhassen, Minnesota
NOTICE IS HEREBY GIVEN that by order of the City Council of the City ofChanhassen, Minnesota, there
have been called for redemption and prepayment on
May 18, 2005
the following outstanding bonds of the City designated as General Obligation Improvement Bonds, Series
1998B, dated June 1, 1998:
Maturity Date
February 1,2006
February 1, 2007
Principal Amount
$155,000
150,000
Interest Rate
4.40%
4.45%
CUSIP Number*
159105 P82
159105 P90
The bonds are being called at a price of 100% of their principal amount plus accrued interest to May 18, 2005,
on which date they will cease to bear interest. Holders of such bonds hereby called for redemption should
present their Bonds for payment to U.S. Bank National Association (successor to Firstar Bank of Minnesota,
N.A.) at the address below, on or before May 18, 2005.
If by Mail
If by Hand or Overnight Mail
U.S. Bank National Association
Corporate Trust Department
P.O. Box 64111
St. Paul, MN 55164-0111
U.S. Bank National Association
U.S. Bank Center
1 st Floor - Bond Drop Window
60 Livingston A venue
St. Paul, Minnesota, MN 55107
It is recommended that you mail your bonds registered or certified mail to guard against loss.
BY ORDER OF THE CITY COUNCIL
CITY OF CHANHASSEN, MINNESOTA
/s/ Mayor
Dated: March 28, 2005
Important Notice: In compliance with the Economic Growth and Tax Relief Reconciliation Act of2001,
federal backup withholding tax will be withheld at the applicable backup withholding rate in effect at the
time the payment by the redeeming institutions ifthey are not provided with your social security number or
federal employer identification number, properly certified. This requirement is fulfilled by submitting a
W -9 Form, which may be obtained at a bank or other financial institution.
*Neither the City nor the Bond Registrar/Paying Agent shall be responsible for the selection of or use of the
CUSIP number, and no representation is made as to its correctness indicated in the Notice of Redemption.
CUSIP numbers are included solely for the convenience ofthe Holders.
BALANCE SHEET
City of Chanhassen
Page: 1
3/14/2005
9:11 am
As of: 3/31/2005
Balances
Fund Type: 300 Debt Service Funds
Fund: 346 - 1998B IMPROVEMENT BONDS
Assets
10 10 Cash
1220 Spec Assments Rec Delinquent
1230 Spec Assessments Deferred
Total Assets
680,072.56
-0.03
116,360.09
796,432.62
Liabilities
2231 Deferred Revenue-Spec Assmts
Total Liabilities
116,360.06
116,360.06
Reserves/Balances
2600 Fund Balance
2699 Change In Fund Balance
Total Reserves/Balances
850,410.06
-170,337.50
680,072.56
Total Liabilities & Balances
796,432.62
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